Revisions to Gross Domestic Product
Gross domestic product (GDP), measures the value of the goods and services produced by the U.S. economy in a given time period. GDP is one of the most comprehensive and closely watched economic statistics.
What do we mean by "revision?"
- The change from initial release to "final" release
- These revisions are most noticed by policymakers and the business community: Yellen, POTUS, Wall Street,...
- Naming conventions vary across indicators
- Initial release may be called advance, preliminary, etc.
Why does GDP revise?
- Revisions to economic indicator inputs due to:
- Late and corrected sample responses
- Concurrent seasonal adjustment
- Error corrections
- Best source data not initially available
- Some key economic indicators are not available for use in the advance GDP estimates
- BEA imputes for them or uses alternative data sources, for example aggregate payroll hours data for health care industries from BLS instead of health care expenditures
Contributions to GDP revisions
Contributions to GDP revisions
Gross private domestic investment
Computers and peripheral equipment
Net exports of goods and services
Government consumption expenditures and gross investment
Personal consumption expenditures
Furnishings and durable household equipment
Recreational goods and vehicles
Food and beverages purchased for off-premises consumption
Gasoline and other energy goods
Household consumption expenditures (for services)
Food services and accommodations
Financial services and insurance
Final consumption expenditures of nonprofit institutions serving households (NPISHs) \
Gross output of nonprofit institutions \
Less: Receipts from sales of goods and services by nonprofit institutions \
Information processing equipment